Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,140 |
| 1 Bedroom | $2,280 |
| 2 Bedrooms | $2,760 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,430 |
| 5 Bedrooms | $5,139 |
| 6 Bedrooms | $5,756 |
| 7 Bedrooms | $6,216 |
| 8 Bedrooms | $6,527 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,760 | $524,317 | 0.53% | F |
| 3BR | $3,660 | $912,415 | 0.4% | F |
| 4BR | $4,430 | $1,343,008 | 0.33% | F |
| 5BR | $5,139 | $1,788,153 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 92003, which covers parts of Bonsall, CA, is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2920, while the Census ACS reports the market rent at $2,252. This means there is a positive spread of $668 per month, or approximately 29.7%, in favor of voucher tenants.
In Bonsall, where 31.2% of residents are renters, the median home value stands at $1,022,180 and the median household income is $113,216. The higher FMR compared to the market rent makes it a compelling yield play for landlords and small-portfolio investors. By accepting Section 8 tenants, landlords can secure a rental rate that exceeds the local market average, thereby increasing their monthly cash flow and overall property yields.
The cost of housing voucher tenants below open-market rates is negligible given the guaranteed payment structure of Section 8 vouchers. Tenants' contributions are based on their income, typically 30% of their adjusted gross income, which ensures a stable and predictable revenue stream for property owners. In Bonsall, the median income suggests that many voucher holders would still be able to contribute a substantial portion towards rent, making the financial risk minimal.
Moreover, the FMR is designed to reflect the 40th percentile of gross rents plus utilities for standard-quality units, ensuring that it is competitive with the broader rental market. This makes it an attractive option for landlords who want to avoid the volatility associated with traditional rental agreements.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.